The Tesla Gigafactory announcement is here! I can't wait till the economies of this scale trickle down to everyone. One of the bigger questions is whether this awesome factory will be built in either Nevada, New Mexico, Arizona or Texas. I'm thinking that maybe Texas or Arizona might win this contract especially with how nice both states have been playing with other Silicon Valley companies. This about it. This Gigafactory will actually manufacture more batteries than the entire world does today!

As we at Tesla reach for our goal of producing a mass market electric car in approximately three years, we have an opportunity to leverage our projected demand for lithium ion batteries to reduce their cost faster than previously thought possible. In cooperation with strategic battery manufacturing partners, we’re planning to build a large scale factory that will allow us to achieve economies of scale and minimize costs through innovative manufacturing, reduction of logistics waste, optimization of co-located processes and reduced overhead.

The Gigafactory is designed to reduce cell costs much faster than the status quo and, by 2020, produce more lithium ion batteries annually than were produced worldwide in 2013. By the end of the first year of volume production of our mass market vehicle, we expect the Gigafactory will have driven down the per kWh cost of our battery pack by more than 30 percent. Here are some details about what the Gigafactory will look like.

via Tesla